Churchill Mining, Ridlatama obtain Indonesia?s first CBM License

London Stock Exchange AIM-listed mining firm Churchill Mining Plc said on Wednesday that the company and its partner, PT Ridlatama Mining Utama, (RMU), won Indonesia’s first Coal Bed Methane (CBM) Joint Evaluation Agreement (JEA) license in East Kalimantan.

 

Churchill and RMU which together form the Ridlatama Consortium were not required to tender for the JEA, which was issued to them by direct appointment from the Indonesian government through Director General of Oil and Gas at the Energy and Mineral Resources Ministry, the company said in a statement.

 

The consortium will create a Joint Operating Company (JOC) and will conduct a full investigation of the 800 square kilometre block in the Kutai Basin.

 

According to the company, the consortium would then proceed to a Production Sharing Agreement with the Indonesian Government at the appropriate time. Churchill will hold 70% of the JOC and RMU 30%, with expenditure by each party proportional to their holding.

 

Churchill has begun discussions regarding the CBM Project with a number of major international oil, gas and CBM companies concerning technical assistance, off-take agreements and financial matters, it said.

 

The initial study identified a number of coal seams located within the appropriate depth range and the CBM Project area has the potential to host Gas-in-Place of 5,626.3 billion cubic feet, the company added. (denny)